The short version
- The Ingredient Accounting System (IAS) tracks incoming eligible ingredients against outgoing ASC Mass Balance feed.
- The accounting period runs annually from January to December, allowing feed mills to temporarily overdraw eligible volumes as long as the balance aligns by year end.
- A five percent tolerance threshold applies at the annual reconciliation, but deficits exceeding this limit or unclosed gaps result in audit non-conformities.
- Category 1 plant ingredients like soy and palm oil require specific volume matching to support deforestation-free supply chain commitments.
Understanding the Mass Balance Production Model
To produce aquafeed under the ASC Feed Standard, feed manufacturers do not necessarily need to physically segregate all sustainable ingredients at every stage of production. Recognizing global supply limitations of certified sustainable raw materials, the standard allows feed mills to operate using the Mass Balance Production Model alongside or instead of physical segregation.
Under Mass Balance, incoming eligible ingredients and outgoing ASC-conforming feed are accounted for administratively through the Ingredient Accounting System (IAS). Eligible ingredients and non-eligible ingredients can be physically mixed during storage, processing, and distribution. However, the total volume of feed sold with an ASC Mass Balance claim must be strictly covered by the volume of eligible ingredients received by the mill.
How the Ingredient Accounting System Operates
Think of the Ingredient Accounting System as a formal volume bank account managed by authorized personnel.
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Recording Inputs: Incoming ingredient deliveries are entered into the IAS upon physical receipt at the mill site. Before entry, the mill must verify ingredient eligibility through its Due Diligence risk assessments and supplier approval process. Contracts or purchase intentions alone cannot be credited to the IAS until physical delivery takes place.
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Tracking Dispatches: Every shipment of ASC Mass Balance feed dispatched from the facility is deducted from the IAS balance in real time or on a continuous basis.
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Managing Pre-Processing Yields: If processing an ingredient before feed manufacturing alters its weight or volume by more than five percent (for example, through moisture removal or waste extraction), the mill must incorporate this yield adjustment into its IAS calculations.
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Perform Quarterly Self-Audits: Conducting internal balancing checks every quarter prevents end of year surprises and gives procurement teams ample time to acquire additional eligible ingredients if a deficit approaches.
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Secure Data Integrity: Restrict IAS editing access to trained quality assurance and inventory management staff, and protect records from unauthorized or accidental modification.
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Verify Entry Prerequisites: Ensure every batch entered into the IAS has a completed Due Diligence report confirming Low Risk status prior to crediting the volume.
- ASC Feed Standard V1.2 (Criteria 3.1, 3.2, and Appendices 5, 11, 13, and 14)
- ASC Feed Standard Interpretation Manual V1.2 (Principle 3 Guidance)
- ASC Logo and Claim User Guide (February 2023)
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